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The AI stock market bubble may be much worse than we feared

As you’re no doubt aware, the global stock market is currently propped up by an ‘AI Bubble’. This means AI stocks are massively overvalued, and the situation may be worse than we knew:

Here's a massive scoop from Ed showing OpenAI has been lying about their revenue for years

— Robert Evans (the Only Robert Evans) (@iwriteok.bsky.social) 2025-11-12T19:54:14.353Z

Will the AI bubble go pop?

The new revelations over the AI bubble can be summed up as follows:

  • Open AI’s services cost a lot more to run that we thought.
  • Open AI’s services make a lot less money that we thought.

Exclusive: Based on documents viewed by this newsletter, OpenAI spent over $12.4 billion on inference from 2024 to September 2025. As part of its Microsoft revenue share, it sent $493.8m in 2024/$865.8m Jan-Sep 2025, implying lower revenues than previously reported.www.wheresyoured.at/oai_docs/

— Ed Zitron (@edzitron.com) 2025-11-12T16:30:48.640Z

The news was broken by tech blogger Ed Zitron. Zitron shared his findings with the Financial Times, who received the following response from Microsoft:

We won’t get into specifics, but I can say the numbers aren’t quite right.

Reassuring, right?

The reason they asked Microsoft is because they’re joined at the hip with Open AI as a result of various deals. This is very common in the AI business, as this chart demonstrates:


The tech billionaires seem to agree the bubble will soon pop, because they’ve started talking about government bailouts:


Altman claims his company is essential because they’re on a path towards creating a super intelligence which will solve all the world’s problems (that or kill us – he’s speculated on both). The problem is that his company may never invent any form of intelligence, because generative AI models aren’t ‘thinking’ engines; they’re probability generators which essentially function like super charged auto-text.

When AI tools generate text, images, or videos, they will inevitably get things wrong, or ‘hallucinate’. We may never be able to fix this problem because of the fundamental way these tools generate output, and this is why companies keep abandoning AI initiatives:

I myself generally avoid using AI, but it seemed fitting to try it for this piece. For the image below, I asked various AI tools to make Altman’s head look like it was inflated – like a bubble – and this was the best I got:

This was the worst:

The big problem is that Open AI want to charge people $20-$200 a month for this garbage, and even then it might not be enough for them to turn a profit.

Wider problems

While AI companies in the medical field are doing interesting things, it’s sadly the case that the big players like Chat GPT are setting fire to the global economy so that users can generate slop like this:

There is actually a reason for Donald Trump to support these companies, though, and it’s because the AI bubble is hiding wider problems in the US economy:


In other words, when the bubble pops, it may only be the beginning of a series of great economic shocks.

Who could have predicted it, eh?

*COUGHS* Karl Marx *COUGHS*.

Featured image via AI

By Willem Moore

This post was originally published on Canary.